Problem 4: Performance Measurement (NEW Problem INFORMATION!!) Weather Accessories, Inc., has four divisions-Winter, Spring Summer and Fall. The company is looking into the performance of each investment centers. Calculate the Return on Investment and Residual Income for each division and explain the 1 results. (CLEARLY SHOW AND LABEL ALL CALCULATIONS). B2 Winter Spring Summer Fall 33 Sales $207,600 $263,600 $269,600 $289,800 34 Net Income $81.720 $115,420 $122,090 $121,090 35 36 237 $756,600 Avg Operating Assets (investment) $837,300 $831,700 $788,200 38 239 a. Calculate the Return on Investment (ROI) for each division. 240 Winter Spring Summer Fall 241 Return on Investment 242 243 244 245 Project Settings A Fall 244 245 246 247 248 b. Calculate the Residual income for each division if the cost of capital is 12% 249 250 Winter Spring Summer 251 252 253 254 255 c. Which division is doing the best? Explain using your data and be sure to explain the meaning of Return on Investment and 256 Residual Income. 257 258 259